JOURNAL ARTICLE

The macroeconomic effects of the tax cuts and jobs act.

  • Published In: Macroeconomic Dynamics, 2023, v. 27, n. 6. P. 1495 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Occhino, Filippo 3 of 3

Abstract

This paper studies the macroeconomic effects of seven key TCJA provisions, including the tax cuts for individuals and businesses, the bonus depreciation of equipment, the amortization of R&D expenses, and the limits on interest deductibility. I use a dynamic general equilibrium model with interest deductibility and accelerated depreciation. I find that, initially, the tax reform had a small positive effect on output and investment. In the medium term, however, the effect on output will diminish, and the effect on investment will turn negative. The tax reform will depress investment in R&D. Government debt will surge. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Macroeconomic Dynamics. 2023/09, Vol. 27, Issue 6, p1495
  • Document Type:Article
  • Subject Area:Law
  • Publication Date:2023
  • ISSN:1365-1005
  • DOI:10.1017/S1365100522000311
  • Accession Number:172285208
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